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U.S. and South Korea sign new trade agreement

Staff Writer |
U.S. President Donald Trump and South Korean leader Moon Jae In signed a new free trade agreement in New York on Monday.

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The deal, which Trump called a "historic milestone", contains significant elements to reduce the U.S. trade deficit with South Korea.

One of the key points is an increase in the car quota for U.S. manufacturers. Every manufacturer will be able to send up to 50,000 cars to Korea in future - more than double the previous limit.

Seoul also relaxed its environmental standards for U.S. imports in return for being exempted from U.S. tariffs on steel imports - but it must still stick to quotas.

South Korea can now deliver 70% of the average from the last three years without paying special tariffs.

The signing of the deal came on the day that the U.S. trade war with China flared up, as new U.S. tariffs oon Beijing worth USD200 billion went into effect.

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